Payment Terms: Definition and Invoicing Importance Payment terms refer to the agreed-upon conditions between a buyer and a seller regarding when and how payment should be made for goods or services. These terms are typically outlined in an invoice or contract and specify the payment due date, method of payment, and any applicable late fees or discounts. Understanding and adhering to payment terms is crucial for both buyers and sellers to ensure smooth financial transactions and maintain healthy business relationships. Importance of Payment Terms Clear and fair payment terms are essential for the financial stability and success of any business. They provide a framework for managing cash flow, reducing payment…